St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-06-09
THEST. PhUL'S new ISSUE
What the Directors Say About the Issue
of New Stock Instead Of Bonds
for the Road.
Yesterdays Session Of the Interstate
Commission---The Matter OF
Transit Rates.
The Minnesota & Northwestern Com
pany Selects Its Officers for
the Next Year.
Opening of the Cascade Division of the
Northern Pacific---The Minnesota
Transfer Officers.

CHICAGO, June S.-P. d. Armour,
Alexander GeddeS, F. S. Bond and the
other officers and directors of the Chi
cage, Milwaukee Il st. Paul railway re-
turned from their tour of inspection of
the line this afternoon. In regard to
the additional issue of $4,000, 900 stock,
which was agreed on at Saturdays
meeting of the directors, for the I'M
proyement and extension of the road,
and the alleged mystery which was
supposed to hang over this action, Vice
President Bond denied any attempt at
secrecy, and said that the matter had
been very fully explained at the meet
ing. Three million dollars of the new
stock was set aside for the purchase of
the Chicago IL Evanston road, which
the st. Paul company would acquire at
its actual cost. They regarded this as a
very valuable piece or property, includ-
ing as it does a right OF way into Chi
cago and terminal facilities, which
alone are worth Sl,000,000, according TO
their estimate. The purchase of this
line. Mr. Armour states, WAS arranged
before Alexander MitchelIs death, but
Mr.. Mitchell never had any financial in
terest in the line. As to the
other SS,OO0,000 of stock which
would be issued, Mr. Bond explained
that it was issued for the simple
purpose of carrying on their projected
extensions in Wisconsin and Nebraska.
They had either TO stop building or
issue the stock. Mir. Armour and Mr..
GeddeS agreed with MIR. Bond in think
ing that the projected extensions i'll the
mineral regions of Wisconsin would
make the most important and best-pay-
ing branch of the road. They intend
building from Merrill, the present
terminus, to Lake Superior. They have
5000 men at work north of Merrill now,
aA@ Mr.. Armour predicted that they
would reach Gogebic before the snow
flies. When questioned as to why an
issue of stock had been preferred to an
issue of bonds Mr.. Bond said it was
done simply because they all agreed it
much better and sounder financial pol
icy to issue stock than bonds. Concern
ing the presidency of the road the direc-
tors said that there was no occasion for
hurry in filling the place. They wanted
to be sure to select the right man for
the place, and while several names were
under consideration, no one had yet
been selected. When asked concerning
the report in connection of L. J.Potter's
name with the Office, Mr. Bond said that
the place never was offered Mr.. Potter
and his name was not under cOnsidera-
ton. Most of the directors left for New
York at 5O'cloek this afternoon.
The Clipper Lines.
WASHINGTON, d. c., June S.-All of
the interstate commerce commissioners
except Chairman Cooley were present
at t0-day'S session. E. n. Taft, counsel
for Sutten Il Co., of New York, repre-
senting the Clipper ship lines, read
statement in opposition to the applica-
ton of the tranScontinental railroad
lines to be released from the operation
of section of the law. In referring to
what he understood to be an agreement
letWeen the tranScOntinental lines and
the Pacific Mail Steamship company to
secure the suspension of section 4, Mr..
Taft said that George Gould IS prom
inent candidate for the presidency of
one OF these lines, so that the relations
between the companies promise to re-
sembe Il marriage Of royal families. AS
illustrating the nature of the cOmpeti-
ton which the Clipper lines are COM
PEELED to meet, Mr.. Taft produced a
tariff sheet of the Southern Pacific Rail
road company, offering to take freightS
for California from several hundred in
terror Eastern cities and towns at the
through rate charged from New York
to California. He said that this yir-
tually amounted to rebate to these
points. If the Clipper lines took freight
from NeWburgh for California they
would require the shipper to pay charges
from the interior town to New York
city. Mr.. Taft submitted a written brief
containing more elaborate exposition
of his views than he cared to make
to-day.